Processing of Return (Intimation) - Section 143(1) - Income Tax - Ready Reckoner - Income Tax

Processing of return [ Section 143(1) ] Where return has been filed u/s 139 or 142(1) , the same shall be processed by CPC after making the following adjustments:- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; or (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified u/s 139(1) ; or (iv) disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return ; or (v) disallowance of deduction claimed under sections 10AA , 80-IA , 80-IAB , 80-IB , 80-IC , 80-ID or section 80-IE , if the return is furnished beyond the due date specified u/s 139(1) ; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return* Notes: *For all returns filed for AY 2018-19 and onwards, Adjustment of clause (vi) shall not be made u/s 143(1) Before making any such adjustment, an intimation has to be given to assessee be duly considered before effecting any adjustment. However, If no response is received within 30 days of issue of such intimation, the processing shall be carried out incorporating the adjustments. After processing, intimation shall be sent if there is refund/demand/adjustment in losses. Intimation shall be issued within 9 months from the end of FY in which return was filed. [Amendment by Finance Act, 2021 ] Section 143(1D) : From AY 17-18 department will issue intimation even if AO already issued Scrutiny Notices u/s 143(2) However, to address the concern of recovery of revenue in doubtful cases, sec 241A provides that, for the returns furnished for AY 2017-18 or thereafter, where refund of any amount becomes due to the assessee u/s 143(1) and the AO is of the opinion that grant of refund may adversely affect the recovery of revenue, he may, for the reasons recorded in writing and with the previous approval of the PCIT/CIT, withold the refund upto the date on which the assessment is made.